Fairfield Connecticut Building Expert Directory

Housing Starts Plunge by the Most in Four Years

May 20, 2015 — Bloomberg
(Bloomberg) -- Housing starts plummeted in February by the most since 2011 as plunging temperatures and snow became the latest hurdles for an industry struggling to recover. Work began on 897,000 houses at an annualized rate, down 17 percent from January and the fewest in a year, the Commerce Department reported Tuesday in Washington. The pace was slower than the most pessimistic projection in a Bloomberg survey of 81 economists. “Today’s report leaves me a little concerned,” said Michelle Meyer, deputy head of U.S. economics at Bank of America Corp. in New York. “While the initial reaction is to dismiss much of the drop because of the bad weather, the level of home construction continues to be depressed.” Read the court decision
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Reprinted courtesy of Bloomberg News

Avoid Five Common Fraudulent Schemes Used in Construction

December 02, 2019 — Ken Van Bree - Construction Executive
Here’s an attention-getting statistic: A typical case of fraud in the construction industry has a median loss of $227,000, according to the 2018 Report to the Nations issued by the Association of Certified Fraud Examiners (ACFE) on occupational or internal fraud. This report further showed that the construction industry’s median loss is approximately $119,000 higher than the average fraud losses across all industries. Construction companies are most at risk for fraud related to corruption (such as bribes and kickbacks), billing related schemes, expense reimbursements, check tampering and equipment or material theft. This brings up three important questions:

What are the fraud schemes affecting your company?
How can contractors keep their companies from experiencing these types of fraud?
What is the profile of fraudster?

The threat of fraud can never be wholly removed; however, companies should take steps to identify likely fraud schemes they might face. Below are a number of schemes frequently used to defraud construction companies. Reprinted courtesy of Ken Van Bree, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Making the World’s Longest Undersea Railway Tunnel Possible with BIM

December 11, 2018 — Aarni Heiskanen - AEC Business
Finland and Estonia are Baltic sea neighbors separated by the Gulf of Finland. Over eight million travelers and 1.2 million cars travel between Helsinki and Tallinn every year by boat. However, a consortium of companies is now planning to build the Finest railway tunnel between the two countries. The vision of such a tunnel has been around since the 1990s. In June 2016, Peter Vesterbacka, previously known as the marketer behind Rovio’s Angry Birds, made the latest endeavor public in his AEC Hackathon presentation. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Construction Manager Has Defense As Additional Insured

September 03, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court found that the construction manager was an additional insured under the contractor's policy. Turner Constr. Co. v. Navigators Ins. Co., 2015 N.Y. Misc. LEXIS 2704 (N.Y. Sup. Ct. July 23, 2015). The owner hired two contractors, Enclos Corp. and Five Star Electric Corp. In their separate contracts with the owner, each contractor agreed to procure a CGL policy naming the owner and a person identified as the construction manager as additional insureds. Travelers was Enclos's insurer, and Navigators Insurance Company was Five Star's insurer. Turner was hired to "provide pre-construction services and construction management services for the Project." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Actual Cost Value Includes Depreciation of Repair Labor Costs

November 07, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer's motion to dismiss after determining that benefits paid for actual cost value (ACV) did not include repair or replacement labor costs. Shahan v. Allstate Vehicle & Prop. Ins. Co., 2022 U.S. Dist. LEXIS 135488 (W.D. La. July 29, 2022). Hurricane Laura damaged the insured's home. She filed a claim with Allstate under her homeowners policy. Allstate issued payment. The insured filed suit alleging Allstate wrongfully withheld amounts by depreciating labor when calculating the ACV of the damaged property. Allstate moved to dismiss. The policy was a replacement cost policy where the insured would receive the actual cash value of her insured property when it was damaged or destroyed by a covered peril. ACV was calculated by taking the repair/replacment which included both material and labor, and then deducting for depreciation. If no repairs or replacements were made, the insured was paid the ACV. If repairs or replacement was done, Allstate reimbursed the insured for the depreciation deduction. The insured challenged Allstate's refusal to pay 100% of the future labor costs, without any depreciation, even if the insured did not replace or repair the damaged property. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Detroit Craftsmen Sift House Rubble in Quest for Treasured Wood

March 19, 2015 — Chris Christoff and Alexandra Mondalek – Bloomberg
(Bloomberg) -- Detroit’s 70,000 abandoned homes are proving to be a trove for entrepreneurs who recycle century-old lumber, glass and brick into everything from terrariums to $4,500 guitars. “It’s like a treasure hunt,” said Craig Varterian, executive director of Reclaim Detroit, a nonprofit group that’s stripped and sold materials from almost 70 demolished homes. Floorboards and joists of early 20th century maple, walnut, hickory, fir and even chestnut are prized for their density and fine grain. As Detroit ramps up demolitions of vacant dwellings, Mayor Mike Duggan plans a reclamation center in a city-owned building to keep tons of rubble out of landfills and create jobs and merchandise. Recycling would become a centerpiece of the city’s blight-removal effort, which is struggling to maintain funding. Reprinted courtesy of Chris Christoff, Bloomberg and Alexandra Mondalek, Bloomberg Mr. Christoff may be contacted at cchristoff@bloomberg.net Ms. Mondalek may be contacted at amondalek@bloomberg.net Read the court decision
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Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies

March 06, 2022 — Nathan A. Cazier & Scott S. Thomas - Payne & Fears
The construction industry operates under the constant spectre of claims seeking damages for defective or faulty workmanship. Fortunately, the law in most states treats these claims as covered under commercial general liability (“CGL”) policies. A small minority of states take a much stingier view. In a newly decided case, a Pennsylvania federal court confirmed that Pennsylvania belongs to this small group of states that regard construction claims as not worthy of liability insurance coverage. Main St. Am. Assurance Co. v. Howard Lynch Plastering, Inc., No. CV 21-3977, 2022 WL 445768, (E.D. Pa. Feb. 14, 2022). Main St. involves a typical construction defect case: W.B. Homes (“W.B.”) developed a residential community, contracting with various trades to build the homes. W.B. required these subcontractors to obtain liability insurance covering their work and, when homeowners sued W.B. for damages due to allegedly faulty work, W.B. tendered the claim to these insurers. One of them, Main Street Assurance Co. (“Main Street”) then sued W.B. for declaratory relief, arguing that under Pennsylvania law, it had no duty to defend W.B. Reprinted courtesy of Nathan A. Cazier, Payne & Fears and Scott S. Thomas, Payne & Fears Mr. Cazier may be contacted at nac@paynefears.com Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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Building a Case: Document Management for Construction Litigation

October 07, 2019 — Robert A. Gallagher, Jane Fox Lehman, & Michael I. Frankel, Pepper Hamilton LLP - ConsensusDocs
Success in construction litigation often turns less on counsel’s ability to craft legal arguments and more on counsel’s ability to gather, master and present the often complex set of facts underlying the case. In construction matters, most of the key facts are found in documents: contract documents, drawings, plans and specifications, schedules, submittals, progress reports, daily logs, change orders, invoices and payment records. Nowadays, these documents will almost certainly be created, exchanged and stored electronically; many will never exist in hard copy. As such, timely collection, organization and analysis of electronically stored information (ESI) is crucially important in construction litigation. The construction industry has always involved a large quantity of records. Today, the majority of those records exist only as ESI: Design professionals use computer-aided design (CAD) software to create construction plans. Construction managers use Primavera or similar software to create schedules and workflows. Estimators use job cost control programs. Innovative firms capture digital photos of the project, from mobilization through the punch process. Because ESI is created and exchanged at a higher rate than hard-copy documents, ESI has facilitated a dramatic increase in the volume of records associated with construction projects. Further compounding the increase is the proliferation of mobile devices. With a smartphone in every pocket, ESI creation has moved out of the home office and the site trailer and onto the site itself. As the volume of ESI expands, so too does the time and expense associated with storing, processing, reviewing and producing these records. This article will cover strategies for balancing time and expense with the requirements of the rules and the needs of the case. Reprinted courtesy of Pepper Hamilton LLP attorneys Robert A. Gallagher, Jane Fox Lehman and Michael I. Frankel Mr. Gallagher may be contacted at gallagherr@pepperlaw.com Ms. Lehman may be contacted at lehmanj@pepperlaw.com Mr. Frankel may be contacted at frankelm@pepperlaw.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES